Against Home Rule (1912) eBook

From the beginning to the end of the inquiry there
was no suggestion that this immense operation could
be carried out except by the use of Imperial credit,
involving the two conditions: (1) that the Consolidated
Fund of the United Kingdom be charged, and (2) that
the British public be asked, and should be willing
to find the money. Although the Majority Report
contemplated an Irish elected authority to work the
railways so purchased and amalgamated, it was never
suggested that any such Irish authority could raise
the necessary purchase capital, or, indeed, any portion
of it. The whole scheme from beginning to end
pre-supposed the continuance of the Union, with its
advantages of credit and capital. Upset that
Union, establish an Irish Parliament working out its
own salvation, financially and otherwise, and the basis
of the whole scheme of railway nationalisation vanishes.

That the British Government should allow its credit
to be used to the tune of fifty millions, after full
legislative, executive and taxing powers were handed
over to an Irish Parliament, is too fantastic to be
considered seriously. Whether an Irish or English
authority controlled the working of the railways would
under such circumstances make little difference, with
the Courts of Law, the Executive, and Police in other
hands than that of the Government guaranteeing the
interest. The security for the advance would
be imperilled; and, indeed, it is doubtful whether
a tenth of the money required would be advanced, even
in London, on those terms. For a similar reason
any formal pledge of Irish rates and taxes, to make
up deficiencies in working, would be illusory.
At any rate, if Irish Land Purchase is to be continued
under British credit (and it certainly will be a prior
claim and charge), it is idle to expect Parliament
to undertake the vast additional obligations involved
in Irish railway nationalisation. Parliament would
pay the piper but could not call the tune.

IRISH CREDIT NOT SUFFICIENT.

There remains the alternative of the new Irish Parliament
financing the operation. This it must do by means
of payment in cash to the selling shareholders, for
reasons which will be hereafter stated, unless it
wishes to start its career by a scheme of spoliation,
which would not merely rob the shareholders (who are
mostly Irish), but would destroy the credit of the
Irish Government. Mr. Redmond has recently acknowledged
that a large number of Irish railway shareholders are
good Nationalists; and it is certain that a great
portion of the ordinary stock is held by Irish farmers
and traders; and much of the preference and debenture
stocks are also held by Irish charities, convents,
diocesan trustees, and monastic institutions.
These persons will expect, and justly expect, cash
on a compulsory purchase, on basis of market value,
or capitalisation of dividend, so as to secure the
same return of interest.